Taxes, the Speed of Convergence, and Implications for WelfareEffects of Fiscal Policy
Previous studies suggest that income taxes do not affect the convergence speed in neoclassical and new growth models. Those studies use very simple tax structures. This paper shows that a relation between taxes and convergence speed emerges if tax benefits are included in standard macroeconomic models. A welfare example suggests that the economic impact could be large even if the absolute size of the effect of taxes on convergence speed is small.
Year of publication: |
2002
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Authors: | Russo, Benjamin |
Published in: |
Southern Economic Journal. - Southern Economic Association - SEA. - Vol. 69.2002, 2, p. 444-456
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Publisher: |
Southern Economic Association - SEA |
Saved in:
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